Kotak Mahindra Bank turned in a robust Q4, marked by unexpected margin expansion alongside declining credit costs. While management expects margins to flatten as deposit rates rise, analysts point to potential support from unsecured lending growth, improving CASA deposits, operating leverage, and a rebound in fee income to help sustain strong returns on assets.
Axis Bank shares slid about 3% even as 94% of analysts kept a buy rating. Strong loan growth and improved asset quality were offset by a sharp rise in provisions tied to the West Asia conflict, pushing up credit costs. Management chose a cautious path to strengthen buffers, which weighed on near-term performance despite the positive longer-term outlook.
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IDFC First Bank CEO V Vaidyanathan says the bank’s Q4 deposit growth slowdown was intentional and temporary, with April data already showing strong momentum. He remains confident of hitting 20% annual deposit growth in FY27, while credit costs trend lower and operating expenses stay under control. The CEO also indicated no West Asia impact yet.
PNB Housing Finance expects 18–20% loan growth this fiscal year, with an ambitious push to build its loan book to Rs 1 lakh crore by FY27. The strategy leans on affordable and emerging customer segments, while recoveries from previously written-off loans are expected to keep credit costs under control.
Tata Capital expects a strong FY27 performance supported by growth, better margins and operating efficiency. The firm highlights a continued drop in credit costs, attributing it to a disciplined risk culture and the adoption of AI. Looking ahead to FY28, it targets 23–25% loan growth, focusing on housing finance and retail products to improve returns.
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